Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs, On January 1.2022. Job 50

image text in transcribed
image text in transcribed
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs, On January 1.2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account on January 1. During the month of January, Lott Company began production on Jobs 51 and 52 , and completed Jobs 50 and 51 . Jobs 49 and 50 were sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $90,000 on account. 2. Incurred factory labor costs of $70,000. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $12,000; and various other manufacturing overhead cost on account $16,000. 4. Assigned direct materials and direct labor to jobs as follows. 5. Assigned indirect materials of $17,000 and indirect labor of $20,000. Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit occount tittes are automatically indented when amount is entered. Do not indent manually.) Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs, On January 1.2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account on January 1. During the month of January, Lott Company began production on Jobs 51 and 52 , and completed Jobs 50 and 51 . Jobs 49 and 50 were sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $90,000 on account. 2. Incurred factory labor costs of $70,000. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $12,000; and various other manufacturing overhead cost on account $16,000. 4. Assigned direct materials and direct labor to jobs as follows. 5. Assigned indirect materials of $17,000 and indirect labor of $20,000. Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit occount tittes are automatically indented when amount is entered. Do not indent manually.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Jane Doe

Authors: Michelle Cornish

1st Edition

1777418828, 978-1777418823

More Books

Students also viewed these Accounting questions

Question

=+5.5. Suppose that X has mean m and variance o2.

Answered: 1 week ago

Question

3. Identify cultural universals in nonverbal communication.

Answered: 1 week ago